- Posted by: Josie Robb
- Category: Property Finance
Australian’s refinancing their home loans reached an all-time high of $17.2 billion, which is a 6% increase since June 2021.
With double the value that was refinanced precisely two years prior, these latest ABS figures prove we are not imagining things.
So why are homeowners refinancing in record numbers?
There are a number of reasons, with the most important being homeowners are looking to save some money.
The RBA cash rate is at an all-time low of 0.1% following six rate cuts in three years and with banks competing fiercely, many are offering record-low home loan rates to win over as many customers as possible.
RateCity reports the number of variable rates under 2% on its database has jumped from 28 to 46 in just two months.
Borrowers are also opting to lock in their interest rate, says the ABS, following reports that lenders have started increasing the rates on 3-5 year fixed-rate loans.
“Borrowers are seeking out lower interest rates, particularly for fixed-rate loans, and cashback deals across a large number of major and non-major lenders,” says ABS head of Finance and Wealth, Katherine Keenan.
COVID-19 is likely increasing the number of people refinancing their home loans too. With many households and businesses around the country doing it tough right now, refinancing is a straightforward way to reduce your monthly mortgage repayments.
Now, fixed-rate loans and cashback deals might look super appealing at first glance, but they might not always be the best fit for your situation. That’s why it helps to have an Allied Property Finance Specialist in your corner.
We can help you go through the fine print, fees and limitations that might exist within these loan options. We can also help you determine whether a fixed, variable or split loan is better suited to your needs.
The other thing we’re great at is negotiating with your lender. This can be both intimidating, not to mention time-consuming and frustrating if they don’t want to play ball.
But lucky for you, we can do the leg-work.
So if you haven’t refinanced in the past few years, get in touch with us today, and Allied Finance can help you save in interest repayments on your mortgage.
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